X0306 4 2016-01-02 0000723188 COMMUNITY BANK SYSTEM, INC. CBU 0001264817 ACE BRIAN R C/O COMMUNITY BANK SYSTEM, INC. 5790 WIDEWATERS PARKWAY DEWITT NY 13214 1 Common Stock 2016-01-02 4 M 0 2910.7146 0 A 50226.0315 D Common Stock 0 I By Laceyville Hardware Sep Common Stock 125.839 I By Spouse Phantom Stock (Deferred Compensation) 2016-01-02 4 M 0 2910.7146 0 D Common Stock 2910.7146 22435.7202 D On January 2, 2016, the reporting person's phantom stock units were settled for an equal number of shares of Community Bank System, Inc. common stock. 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. Includes 211.6943, 199.4915, and 209.3552 units acquired on April 10. 2015, July 10, 2015 and October 9, 2015, respectively, pursuant to the Deferred Compensation Plan's dividend reinvestment feature. /s/ Danielle M. Cima, pursuant to a Confirming Statement executed by Brian R. Ace 2016-01-05