TD Bank Targets 100 U.S. Branches as AML Remediation Continues

TD Bank plans to open 100 U.S. branches by the end of 2028, focusing on strengthening its presence in major Northeast markets while expanding in Florida and the Carolinas, subject to regulatory approval. The bank’s anti-money-laundering remediation remains ongoing: fiscal 2026 costs rose to $550 million, and new controls must still be validated by internal and external reviewers before regulatory relief. TD is targeting C$750 million in structural U.S. cost savings to fund growth, while expanding AI use in technology, AML monitoring and customer service; its U.S. business also returned to loan growth and posted a 3.47% third-quarter net interest margin.

Toronto Dominion Bank NYSE: TD plans to open 100 new U.S. branches by the end of calendar 2028, subject to regulatory approval, as the bank resumes an expansion strategy that was paused during its anti-money-laundering remediation efforts. Leo Salom, TD Bank’s Head of U.S. Banking, said the expansion will build on an existing network of roughly 1,100 stores. The bank opened about 250 stores during the prior decade, he said, and now intends to increase density in markets where it already has a significant presence while extending its reach in the Southeast.

Salom cautioned that the branch announcement should not be viewed as evidence that TD has completed its remediation plan or met all requirements under its consent order. He said the order provides for the bank to open branches and that TD has confidence, based on regulatory discussions, that it can pursue the planned openings through 2028.

The bank has rebuilt the management team overseeing its Bank Secrecy Act and AML program, appointing 40 experienced officers, according to Salom. TD has also renewed policies and procedures, implemented a customer-risk-rating program and a transaction-monitoring platform, revamped investigative capabilities and training, and strengthened its engagement model with law enforcement. TD is now entering a validation and sustainability phase, Salom said. Management actions will be tested by the business, internal audit, an independent monitor and, ultimately, the regulator before they can support regulatory relief.

The bank increased its fiscal 2026 U.S. BSA/AML remediation expense guidance to $550 million from $500 million. Salom said most of the $50 million increase relates to a look-back exercise, with the remainder tied to accelerating management actions previously planned for later in 2026 and 2027. He said TD expects governance and control costs connected to AML remediation to moderate in fiscal 2027, particularly during the second half. More than half of total remediation spending is expected to be permanently reduced over time, while some costs will remain part of the ongoing AML operating structure.

TD is targeting a C$750 million reduction in structural costs in its U.S. business over its medium-term outlook period. Salom said the bank has already realized nearly C$200 million in savings this year through store optimization, discontinued businesses tied to balance-sheet restructuring, staffing initiatives, lo...