TD Bank Group in Toronto will have a new president and chief executive for its U.S. banking unit next summer.

Mike Pedersen, 55, will retire as head of the $275 billion-asset U.S. division on June 1, 2017, TD announced late last week.

Pedersen will be replaced by Greg Braca, 52, who currently serves as head of corporate and specialty banking. Braca will hold the title of chief operating officer during the transition period.

Braca will report directly to Pedersen during the seven-month transition.

In a press release, Bharat Masrani, CEO of the parent company, praised Pedersen for leading the bank "through some of the most challenging economic conditions in U.S. history."

Pedersen joined TD in 2007 as the group head of corporate operations. He was named president and CEO of the U.S. division five years later. He previously held senior-level roles at Barclays in London.

Following his retirement, Pedersen will remain an adviser to TD "for a period of time," the company said in an Oct. 27 press release. No additional details about the advisory role were provided.

TD hired Braca in 2002. Before leading the specialty and corporate banking division, he oversaw retail and commercial banking in New York.

Before joining TD, Braca worked in the health care group at the $213 billion-asset FleetBoston, which was acquired in 2004 by Bank of America.

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