X0306 4 2018-06-28 0000723188 COMMUNITY BANK SYSTEM, INC. CBU 0001220435 DAVIS JEFFREY L C/O COMMUNITY BANK SYSTEM, INC. 5790 WIDEWATERS PARKWAY DEWITT NY 13214 1 Phantom Stock (Deferred Compensation) 2018-06-28 4 A 0 272.8799 59.55 A Common Stock 272.8799 571.923 D Phantom Stock (Deferred Compensation under Merchants plan) Common Stock 52916.3177 52916.3177 D 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. 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. Includes 331 units of phantom stock acquired under the Merchants' deferred compensation plan's dividend reinvestment feature. Danielle M. Cima, pursuant to a Confirming Statement executed by Jeffrey L. Davis 2018-07-02