OFG Bancorp (NYSE:OFG) today announced it has elected to effect the conversion of all of its outstanding 8.750% Non-Cumulative Convertible Perpetual Preferred Stock, Series C (the "Series C Preferred Stock") into OFG Bancorp common stock (the "Common Stock") pursuant to the terms of the Series C Preferred Stock.

On August 14, 2018, the closing sale price of the Common Stock was $17.50, which marked the 20th trading day in the previous 30 consecutive trading days that the Common Stock closed above $15.04 (which is equal to 130% of the applicable conversion price for the Series C Preferred Stock), triggering the right of OFG Bancorp to elect to mandatorily convert all shares of Series C Preferred Stock into shares of Common Stock in accordance with the terms of the Series C Preferred Stock. The conversion will be effective on October 22, 2018 (the "Mandatory Conversion Date").

On the Mandatory Conversion Date, each share of Series C Preferred Stock will be converted into 86.4225 shares of Common Stock. Cash will be paid in lieu of fractional shares of Common Stock. No action by holders of the Series C Preferred Stock is required.

There are currently 84,000 shares of Series C Preferred Stock outstanding, all of which will be converted to Common Stock on the Mandatory Conversion Date. The conversion of the Series C Preferred Stock will not impact OFG Bancorp’s previously announced per share results, which included the dilutive impact of the conversion.

Upon conversion at the close of business on the Mandatory Conversion Date, the Series C Preferred Stock will no longer be outstanding and all rights with respect to the Series C Preferred Stock will cease and terminate, except the right to receive the number of whole shares of Common Stock issuable upon conversion of the Series C Preferred Stock and any required cash-in-lieu of fractional shares.

Following the Mandatory Conversion Date, the holders of the Series C Preferred Stock will not be entitled to receive any dividends on their converted shares of Series C Preferred Stock payable to holders as of a record date that is on or after the Mandatory Conversion Date.

About OFG Bancorp

Now in its 54th year in business, OFG Bancorp is a diversified financial holding company that operates under U.S. and Puerto Rico banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services and technology, primarily in Puerto Rico. Investor information can be found at www.ofgbancorp.com.

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