Community Financial (NYSE: CBU) director converts 1,254 phantom units to stock

Rhea-AI Filing Summary

COMMUNITY FINANCIAL SYSTEM, INC. director Raymond C. Pecor III reported the settlement of phantom stock units into common shares. On March 19, 2026, 1,254 phantom stock (deferred stock) units were exercised and settled for 1,254 shares of common stock, with an additional 0.5514 unit settled in cash at $55.61 per share.

Following the transaction, he held 11,439.221 shares of common stock directly and 7,136.111 phantom stock units. A separate line shows 11,277.977 shares held indirectly by a trust, for which he disclaims beneficial ownership.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

Pecor Raymond C III

(Last) (First) (Middle)

C/O COMMUNITY FINANCIAL SYSTEM, INC.

333 BUTTERNUT DRIVE

(Street)

SYRACUSE NEW YORK 13214

(City) (State) (Zip)

UNITED STATES

(Country)

2. Issuer Name and Ticker or Trading Symbol
COMMUNITY FINANCIAL SYSTEM, INC. [ CBU ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director		10% Owner
	Officer (give title below)		Other (specify below)

2a. Foreign Trading Symbol

3. Date of Earliest Transaction (Month/Day/Year)
03/19/2026

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

4. If Amendment, Date of Original Filed (Month/Day/Year)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	03/19/2026		M		1,254	A	(1)	11,439.221	D
Common Stock								11,277.977	I	By Trust(2)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Phantom Stock (Deferred Stock Units)	(3)	03/19/2026		M			1,254	(3)	(3)	Common Stock	1,254	(1)	7,136.111	D

Explanation of Responses:

1. On March 19, 2026, the reporting person's phantom stock units were settled for 1,254 shares of Community Financial System, Inc. common stock, and .5514 shares were settled in cash at the price of $55.61 per share.

2. 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.

3. The reporting person has received deferred stock units under the Community Financial System, Inc. 2022 Long-Term Incentive Plan, as amended (the "LTIP"). Each phantom stock unit which represents a deferred stock unit is the economic equivalent of one share of Community Financial System, Inc. common stock and will be settled in common stock at a predetermined date.

	/s/ Danielle M. Cima, pursuant to a Confirming Statement executed by Raymond C. Pecor, III	03/23/2026
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.
* Form 4: SEC 1474 (03-26)

FAQ

What insider transaction did Raymond C. Pecor III report for COMMUNITY FINANCIAL SYSTEM (CBU)?

Raymond C. Pecor III reported settling phantom stock units into common stock. On March 19, 2026, 1,254 deferred stock units were exercised, creating 1,254 shares of COMMON STOCK and a small cash settlement, reflecting routine compensation-related activity rather than an open-market trade.

How many COMMUNITY FINANCIAL SYSTEM (CBU) shares came from the phantom stock settlement?

The phantom stock settlement produced 1,254 shares of COMMUNITY FINANCIAL SYSTEM common stock. These shares resulted from exercising deferred stock units under the company’s long-term incentive plan, converting compensation-linked phantom units into actual equity on the reported settlement date.

What is phantom stock or deferred stock units in the CBU Form 4 filing?

Phantom stock units in this filing are deferred stock units granted under the 2022 Long-Term Incentive Plan. Each phantom unit is economically equivalent to one common share and is settled in common stock at a predetermined date, aligning director compensation with shareholder value.

How many COMMUNITY FINANCIAL SYSTEM (CBU) shares does Raymond C. Pecor III hold directly after the transaction?

After the transaction, Raymond C. Pecor III directly held 11,439.221 shares of COMMUNITY FINANCIAL SYSTEM common stock. This figure comes from the post-transaction holding line for common stock in the Form 4, showing his direct ownership position following the phantom unit settlement.

What indirect COMMUNITY FINANCIAL SYSTEM (CBU) holdings are reported by trust in the Form 4?

The Form 4 lists 11,277.977 shares of COMMUNITY FINANCIAL SYSTEM common stock held indirectly by a trust. The filing states that the reporting person disclaims beneficial ownership of these shares, meaning they are reported for transparency but not claimed as personally owned.

Was the CBU Form 4 transaction an open-market purchase or sale?

The CBU Form 4 transaction was not an open-market trade. It records the exercise and settlement of phantom stock units into common shares and a small cash amount, a compensation-related event rather than a discretionary market purchase or sale of the company’s stock.