X0303 4 2011-04-11 0000723188 COMMUNITY BANK SYSTEM INC CBU 0001486057 Parente John 478 SCHOOLHOUSE ROAD TUNKHANNOCK PA 18657 1 Phantom Stock (Deferred Compensation) 2011-04-11 5 J 0 E 20.3074 24.69 A Common Stock 20.3074 2109.4282 D Phantom stock units were acquired on April 11, 2011 under the Deferred Compensation Plan's dividend reinvestment feature. 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. /s/ Donna J. Drengel, pursuant to a Confirming Statement executed by John Parente 2011-06-01