Toronto-Dominion Bank’s chief executive, Ed Clark, said TD’s latest U.S. acquisition reflects the fact that there aren’t many big growth opportunities available in the domestic market.

Speaking at the RBC Capital Markets Financial Institutions Conference held in Martha’s Vineyard today, Clark explained TD’s planned acquisition of Maine’s Banknorth Group Inc. to the investor crowd. He said that TD pursued Banknorth because the bank was seeking a management team that could run a U.S. personal and commercial bank, a skill that doesn’t exist within the current TD team.

Clark said he doesn’t believe that there are really any great undiscovered killer banking strategies out there, so TD looks to outperform rivals by achieving operational excellence, rather than strategic ingenuity.

Along with management skill, Clark said that TD also covets Banknorth because of its size; he said TD didn’t want to inherit another bank’s scale problem. Banknorth also appeals because of its New England location — which represents a cultural fit with a Canadian bank, and offers plenty of local acquisition opportunities.

Clark conceded that there has been some controversy about TD’s plan to just buy 51% of Banknorth, rather than taking it out fully. He said TD chose this method because the bank wants to leave some capital free for further U.S. acquisitions through Banknorth, not to blow it all on this one deal. This structure also keeps Banknorth’s management accountable directly to its shareholders.

Clark allowed that the structure could outlive its usefulness over time, but that it make sense now while TD expects to continue making major U.S. acquisitions.

Banknorth’s CEO, Bill Ryan said TD will be branding its new prize as TD Banknorth. Ryan also indicated that TD Banknorth will likely be looking for expansion opportunities to the south, into the New York, New Jersey and Pennsylvania areas. He said that pace of acquisitions likely won’t change, but that TD Banknorth may now buy bigger rivals with the support of TD’s capital.

At the same conference, Real Raymond, president and CEO of National Bank, said National does not have any major U.S. expansion plans. He says that the bank plans to send its excess capital back to shareholders through dividends and share buybacks.

Raymond highlighted the continued growth of National’s retail brokerage operation both in and outside Quebec. He reported that National is ramping up its cross selling between account managers and financial planners. He added that that growing in the wealth management arena is attractive because it can be done with less capital than other areas of the bank require, so he expects more growth in this segment.