COMMUNITY FINANCIAL SYSTEM, INC. — Director's Dealing 2020

Jan 17, 2020

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY BANK SYSTEM, INC. (CBU)
CIK: 0000723188
Period of Report: 2020-01-15

Reporting Person: Fesette Neil E. (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2020-01-15	Common Stock	M	2697.3839	—	Acquired	6692.5359	Direct
2020-01-15	Common Stock	M	1779.4092	—	Acquired	8471.9451	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2020-01-15	Phantom Stock (Deferred Compensation)	$	M	2697.3839	Disposed		Common Stock (2697.3839)	Direct
2020-01-15	Phantom Stock (Deferred Stock Units)	$	M	1779.4092	Disposed		Common Stock (1779.4092)	Direct

Footnotes

F1: On January 15, 2020, the reporting person's phantom stock units were settled for an equal number of shares of Community Bank System, Inc. common stock.

F2: On January 15, 2020, the reporting person's deferred stock units were settled for an equal number of shares of Community Bank System, Inc. common stock.

F3: Each unit of phantom stock is the economic equivalent of one share of Community Bank System, Inc. common stock. The units of phantom stock relating to the Deferred Compensation Plan will be settled in Community Bank System, Inc. common stock at future dates selected by the reporting person.

F4: Includes 236.7072 units of phantom stock acquired under the Deferred Compensation Plan's dividend reinvestment feature.

F5: The reporting person has received deferred stock units under the Community Bank System, Inc. 2014 Long-Term Incentive Plan. Each phantom stock unit which represents a deferred stock unit is the economic equivalent of one share of Community Bank System, Inc. common stock and will be settled in common stock at a predetermined date.

F6: Includes 86.5868 units of phantom stock acquired as dividend equivalents under the 2014 Long-Term Incentive Compensation Program.