Higher credit costs and lower interest rates cut into the profits of the U.S. operations of Toronto-Dominion Bank in the most recent quarter.

Toronto-Dominion's personal and commercial banking arm in the U.S. — which includes more than 1,000 branches along the East Coast under the names TD Banknorth and TD Bank — had net income of $107 million in the quarter ended Oct. 31, down 25% from the prior quarter and down 53% from a year earlier.

W. Edmund Clark, Toronto-Dominion's chief executive, said in a statement that U.S. profits were hurt by a "rising provision for credit losses and low nominal interest rates."

He said a "complex integration" of Commerce Bancorp that resulted in a restructuring charge of $84.4 million. Toronto-Dominion endured bad press in October when a glitch in the integration of Commerce caused some TD Bank customers to lose access to their direct deposits and account balances.

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