COMMUNITY FINANCIAL SYSTEM, INC. — Director's Dealing 2021

Mar 17, 2021

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY BANK SYSTEM, INC. (CBU)
CIK: 0000723188
Period of Report: 2021-03-16

Reporting Person: Pecor Raymond C III (Director)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2021-03-16	Phantom Stock (Deferred Stock Units)	$	A	569	Acquired		Common Stock (569)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	8180.7093	Direct
Common Stock	8590.776	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Phantom Stock (Deferred Compensation)	$		Common Stock (2320.4164)	2320.4164	Direct
Phantom Stock (Deferred Compensation under Merchants plan)	$		Common Stock (8634.7219)	8634.7219	Direct

Footnotes

F1: Includes 220.343 shares acquired pursuant to the Community Bank System, Inc. Dividend Reinvestment Plan.

F2: Includes 231.393 shares acquired pursuant to the Community Bank System, Inc. Dividend Reinvestment Plan.

F3: The reporting person disclaims beneficial ownership of these securities, and the inclusion of these shares in this report shall not be deemed an admission of beneficial ownership of all of the reported shares for purposes of Section 16 or any other purpose.

F4: 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.

F5: Includes 38.7442 units of phantom stock acquired as dividend equivalents under the 2014 Long-Term Incentive Compensation Program.

F6: 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.

F7: Includes 35.8567 units of phantom stock acquired under the Deferred Compensation Plan's dividend reinvestment feature.

F8: The units of phantom stock were acquired through Merchants Bancshares, Inc.'s ("Merchants") deferred compensation plan. 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 such deferred compensation plan will be settled in Community Bank System, Inc. common stock at future dates selected by the reporting person.

F9: Includes 232.5695 units of phantom stock acquired under the Merchants' deferred compensation plan's dividend reinvestment feature