OFG Bancorp Increases Quarterly Common Stock Dividend 25%; Repurchases More Shares in 4Q14

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--

OFG Bancorp OFG today announced its Board of Directors increased the quarterly cash dividend per common share and the Company repurchased more common shares in the open market.

The Board increased the regular quarterly cash dividend 25%, to $0.10 from $0.08 per share, for the fourth quarter ending December 31, 2014. On an annualized basis, the dividend expands to $0.40 per share, from $0.32, and represents a 2.7% yield based on yesterday's closing price of $15.00. The dividend is payable January 15, 2015, to holders of record December 31, 2014, with a December 29, 2014 ex-dividend date. OFG has now raised its quarterly dividend three times over the past four years.

OFG also announced it repurchased 444,613 common shares to date in the 2014 fourth quarter, at an average price of $14.65 per share, for a total of $6.5 million. Year to date, OFG repurchased 1,152,113 common shares (equal to 2.52% of total shares issued and outstanding as of 12/31/13), at an average price of $14.66 each, for a total of $16.9 million.

As a result, OFG Bancorp has returned 42.3% of its annualized earnings in 2014 to investors comprised of common stock dividends (21.1%) and shares repurchased (21.2%). The new increased common stock dividend will not have a material impact on the anti-dilution effect of the Series C preferred shares outstanding.

José Rafael Fernández, President, Chief Executive Officer and Vice Chairman of the Board, said, “The 25% increase in our common stock dividend and the 1,152,113 shares repurchased this year reflect the continued soundness and profitability of our banking and wealth management businesses; greater growth in book value than originally anticipated; and the Board's policy of regularly reviewing how best to maximize return to shareholders.”

About OFG Bancorp

Now in its 50^th 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 full range of commercial, consumer and mortgage banking services, as well as financial planning, trust, insurance, investment brokerage and investment banking services, primarily in Puerto Rico, through 55 financial centers. Investor information can be found at www.ofgbancorp.com.