COMMUNITY FINANCIAL SYSTEM, INC. — Director's Dealing 2022

Mar 17, 2022

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY BANK SYSTEM, INC. (CBU)
CIK: 0000723188
Period of Report: 2022-03-15

Reporting Person: Pecor Raymond C III (Director)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2022-03-15	Phantom Stock (Deferred Stock Units)	$	A	644	Acquired		Common Stock (644)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	8367.3083	Direct
Common Stock	8786.732	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Phantom Stock (Deferred Compensation)	$		Common Stock (3351.3547)	3351.3547	Direct
Phantom Stock (Deferred Compensation under Merchants plan)	$		Common Stock (8831.6751)	8831.6751	Direct

Footnotes

F1: Includes 186.599 shares acquired pursuant to the Community Bank System, Inc. Dividend Reinvestment Plan.

F2: Includes 195.956 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 (the "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 44.4941 units of phantom stock acquired as dividend equivalents under the Plan.

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 17.0185 units of phantom stock acquired on January 10, 2022 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 196.9532 units of phantom stock acquired under the Merchants' deferred compensation plan's dividend reinvestment feature.