TORONTO A U.S. probe into Toronto-Dominion Bank's anti-money laundering compliance program is "manageable, the bank's head of U.S. retail operations said on Wednesday.

TD, Canada's second largest lender, disclosed in August it had been cooperating with U.S. authorities, including the U.S. Department of Justice, in an investigation and said it expected fines and non-monetary penalties.

Leo Salom, chief executive officer of TD Bank, the U.S. unit, said the disclosure was not related to its termination of the $13.4 billion deal to buy American regional lender First Horizon in May.

The bank called off the deal because of uncertainty about the timing of regulatory approvals, Salom said at a Barclays conference.

"We take those items (inquiry) very seriously. And we employ whatever resources are required to be able to deal with that issue," he said. "We believe that's a manageable item and in the fullness of time we will be able to resolve."

The bank has not disclosed the size of a potential fine related to the matter. Investors, however, have sought comfort in the bank's excess capital after the deal was called off.

(Reporting by Nivedita Balu in Toronto; Editing by Richard Chang)