8-K

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

                               ------------------

                                    FORM 8-K

                                 CURRENT REPORT
     Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  August 14, 2006

                           Community Bank System, Inc.
             (Exact name of registrant as specified in its charter)

Delaware                             001-13695              16-1213679
(State or other jurisdiction         (Commission            (IRS Employer
of incorporation)                    File Number)           Identification No.)

5790 Widewaters Parkway, DeWitt, New York                   13214
(Address of principal executive offices)                    (Zip Code)

Registrant's telephone number, including area code: (315) 445-2282

 -----------------------------------------------------------------------------
          (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)

|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)

|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))

|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))



Section 8 - Other Events

Item 8.01 Other Events.

On August 14, 2006, Community Bank System, Inc. (the "Company") announced the
completion of its acquisition of ES&L Bancorp, Inc., as contemplated by the
Agreement and Plan of Merger, dated as of April 20, 2006, by and among the
Company, ESL Acquisition Corp. and ES&L Bancorp, Inc.

Further details are contained in the press release attached hereto as Exhibit
99.1.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

         The following Exhibit is filed as an exhibit to this Form 8-K.

      Exhibit No.                          Description
      -----------                          -----------

         99.1           Press Release, dated August 14, 2006, announcing the
                        completion of the merger with ES&L Bancorp, Inc.

                                   SIGNATURES

            Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                            Community Bank System, Inc.

                            By:  /s/ Mark E. Tryniski
                                -----------------------------------------------
                                  Name:  Mark E. Tryniski
                                  Title: President and Chief Executive Officer

Dated: August 16, 2006



                                  EXHIBIT INDEX

      Exhibit No.                     Description
      -----------                     -----------

         99.1          Press Release, dated August 14, 2006, announcing the
                        completion of the merger with ES&L Bancorp, Inc.

EX-99.1

                                                                Exhibit No. 99.1

[LOGO]

COMMUNITY BANK SYSTEM, INC.                 For further information contact:
5790 Widewaters Parkway                     Scott A. Kingsley
DeWitt, N.Y. 13214                          E.V.P. and Chief Financial Officer
                                                                  (315) 445-3121

Community Bank System Completes ES&L Bancorp Acquisition

      Syracuse, N.Y. - August 14, 2006 - Community Bank System, Inc. (NYSE: CBU)
has completed its acquisition of ES&L Bancorp, Inc., previously announced on
April 21.

      Based in Elmira, N.Y., ES&L Bancorp is the parent company of Elmira
Savings and Loan, F.A., a federally chartered thrift operating as a community
bank. With roots dating back to 1888, the company has two branches in the cities
of Elmira and Ithaca, as well as mortgage and title insurance subsidiaries, all
of which combine to total approximately $210 million in assets, including $190
million in loans.

      An all-cash transaction valued at approximately $39 million, this
acquisition is expected to be immediately accretive to earnings.

      As previously indicated, ES&L Bancorp President William A. McKenzie will
remain with Community Bank System as a Senior Regional Vice President, bringing
his significant market knowledge and experience to work for the company.

      "We are very pleased to welcome ES&L Bancorp's customers and employees
into the Community Bank, N.A. family," said Mark E. Tryniski, President and
Chief Executive Officer of Community Bank System. "We are equally pleased to be
extending our presence in the Elmira region, and to be entering the Ithaca
community for the first time. We're confident that the greater breadth of
banking and financial services products which we offer will be well received by
consumers within these markets. This is an excellent expansion opportunity, and
we look forward to taking an active role within these vibrant communities."

      Community Bank System, Inc. is a registered bank holding company based in
DeWitt, N.Y. (near Syracuse), with $4.4 billion in assets and approximately 130
customer facilities. Its wholly-owned banking subsidiary operates as Community
Bank, N.A. across Upstate New York, and as First Liberty Bank & Trust throughout
Northeastern Pennsylvania. For further information please visit our websites at
www.communitybankna.com or www.firstlibertybank.com.

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