COMMUNITY FINANCIAL SYSTEM, INC.

The Company’s primary headquarters are located at 333 Butternut Drive, Syracuse, New York, which is leased. The Company has 261 properties, of which 140 are owned and 121 are under lease arrangements, excluding 4 properties that are in process of being opened for business in connection with the Bank’s de novo branch expansions, all of which are under lease arrangements. The majority of the Company’s properties are used by the Banking and Corporate segment which operates 192 full-service bank branches, 8 drive-thru only bank facilities and 18 facilities for back office banking and corporate operations. The Employee Benefit Services segment uses 17 properties including 16 customer service facilities and 1 facility for back office operations, all of which are leased. The Insurance Services segment uses 23 customer service facilities, 20 of which are leased. Certain properties are shared for operations of multiple segments, including most of the properties in use by the Wealth Management Services segment. Certain properties also contain tenant leases or subleases. None of the properties were subject to any material encumbrances. The Company believes that its facilities are suitable and adequate for the Company’s current operations.

Additional information regarding the Company’s properties is set forth in Note E and Note O to the consolidated financial statements included under Part II, Item 8.