A bank encountered at the checkout
A shopper using a Target or Nordstrom credit card may have a banking relationship with TD Bank USA, National Association, without visiting a TD branch. The credit agreements in its public file identify this Delaware national bank as the card issuer. The store’s name describes the retail relationship; the bank’s name identifies the lender to whom the cardholder owes money. This distinction is essential to understanding a charter whose work is much larger than its physical presence suggests. [1]
A separate institution inside a Canadian-owned group
The FDIC’s October 2, 2026 directory lists TD Bank USA as an active national bank in Wilmington, Delaware, certificate 33947 and OCC charter 22611. Its establishment date is October 13, 1994. It is not the same insured institution as the much larger TD branch-bank charter. Sharing a brand, ultimate owner or regulatory order does not combine the two certificates or make one bank’s financial report a substitute for the other’s. [2]
The OCC’s September 18, 2023 Community Reinvestment Act evaluation describes TD Bank USA as wholly owned by TD Bank US Holding Company. It classifies the institution as a limited-purpose bank for CRA purposes, issuing cards through retailer partnerships, with one Wilmington location and no branch offices during the review. Its principal funding then came through a deposit program involving Charles Schwab Corporation and affiliated broker-dealers. That is a specific, dated account of the operating model, rather than an assumption based on the TD name. [3]
The 2013 transaction that shaped the card business
On March 13, 2013, The Toronto-Dominion Bank acquired substantially all of Target Corporation’s existing U.S. private-label and Visa card portfolios through TD Bank USA. The acquired balances were about US$5.8 billion. The original seven-year agreement made the bank the exclusive issuer for the specified Target card program. Target handled operations and customer service and bore most servicing costs, while the bank controlled risk-management policies and regulatory compliance and funded the relevant receivables. [4]
This divided the work between a retailer with customer relationships and a bank with funding and lending responsibilities. The 2013 contract terms explain the original mechanism; they are not presented as an unchanged statement of every commercial term in 2026. Current card agreements establish the present issuer identity, while renewal economics and profit-sharing details require their own evidence. [4]
Funding that comes through an investment platform
Schwab’s second-quarter 2026 filing identifies TD Bank USA and TD Bank, National Association as the institutions under its insured-deposit agreement. Schwab earns fees through that arrangement. Such deposits connect TD Bank USA to brokerage cash choices as well as cardholder borrowing. The filing does not allocate the bank’s entire latest deposit total to that channel. [5]
The bank’s own financial snapshot
At June 30, 2026, TD Bank USA reported $32.126 billion in assets, $27.178 billion in deposits and $7.850 billion in net loans. A year earlier the corresponding figures were $34.506 billion, $27.968 billion and $7.968 billion. Securities were $18.415 billion and cash balances $4.221 billion. The asset mix therefore included considerably more than credit-card receivables, even though card lending is central to the customer-facing business. [6]
Gross consumer loans were $8.518 billion of $8.713 billion in total gross loans. First-half net income fell from $206.962 million in 2025 to $67.791 million in 2026. The noncurrent-loan ratio improved from 2.41% to 2.08%, while equity was $3.834 billion. Those facts can coexist: the loan-status ratio measures a particular credit condition, and does not explain the entire movement in income. The data alone cannot allocate that earnings change among funding, operating costs, credit provisions and other factors. [6]
The growth restriction covers two charters together
In October 2024, the OCC imposed a cease-and-desist order, a $450 million civil money penalty and an asset restriction on TD Bank, N.A. and TD Bank USA, N.A. The cap was based on their combined September 30, 2024 assets. It was not a separate $434 billion allowance for each bank. The order also restricted new branches and markets without supervisory non-objection and required extensive anti-money-laundering remediation. These obligations concern controls over financial activity, rather than the ordinary distinction between a profitable and unprofitable quarter. [7]
TD’s August 27, 2026 earnings release said substantial U.S. remediation work and milestones remained in 2026 and 2027. Management expected the suspicious-activity-report lookback to finish in 2027, subject to validation, monitor review and regulatory approval; additional work could extend beyond that. These are group-level remediation statements. They neither allocate all program costs to TD Bank USA nor establish that supervisors have lifted its restrictions. [8]
Community obligations remain part of the model
The 2023 OCC evaluation rated TD Bank USA Outstanding under the CRA and described community-development lending, investments and services. That rating concerns the bank’s record of meeting community credit needs over the reviewed period. It is not a safety-and-soundness rating and does not cancel later enforcement findings. Together, the records describe a specialized retail-card bank with meaningful funding and compliance responsibilities, rather than a miniature copy of the group’s branch network. [3]
Sources
- TD Bank USA: Target and Nordstrom credit-card agreements, including January 2026 disclosuresSource · PDFBack to text: ↑
- FDIC institution directory: certificate 33947, October 2, 2026 indexOfficial sourceBack to text: ↑
- OCC: TD Bank USA limited-purpose-bank CRA evaluation, September 18, 2023Source · PDFBack to text: ↑1↑2
- Toronto-Dominion Bank: 2013 annual report on Form 40-F, Target portfolio acquisitionFiling / report · PDFBack to text: ↑1↑2
- Charles Schwab: second-quarter 2026 Form 10-Q, bank deposit agreement and crypto custody providerFiling / reportBack to text: ↑
- FDIC bank-only financial reports: certificate 33947, June 30, 2026 and June 30, 2025; amounts in thousands of dollarsOfficial sourceBack to text: ↑1↑2
- OCC: two-charter asset-cap and business-restriction fact sheet, October 10, 2024Official release · PDFBack to text: ↑
- TD Bank Group: third-quarter 2026 results and ongoing AML remediation, August 27, 2026SourceBack to text: ↑