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OFG Bancorp Announces Mandatory Conversion of 8.750% Series C Convertible Preferred Stock

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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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