Hills Bank and Trust Company has entered into an agreement to purchase a portion of the former ACT campus in Iowa City for $20.7 million, the company announced May 15.
The acquisition, first disclosed in a Form 8-K filing with the U.S. Securities and Exchange Commission on May 11, covers approximately 19.2 acres at 200 and 500 ACT Dr., including the ACT Ferguson and Davidsen Buildings. Closing is scheduled for the first quarter of 2027, pending regulatory approvals and other standard real estate purchase conditions.
Hills Bank, a wholly-owned subsidiary of Hills Bancorporation, said the purchase is driven by sustained growth that has reached capacity across several existing facilities. The new property will allow the bank to consolidate operational teams in a single location, with space for training and development. The bank also plans to lease portions of the campus and explore ways to keep the property connected to the broader community.
The bank’s headquarters will remain in Hills, where it has operated for more than a century, retaining its full-service branch, leadership presence and customer-service teams.
“This is a thoughtful long-term decision that reflects our continued growth and commitment to remaining an independent, locally based community bank, while reinvesting in a site that has long been an important part of the Iowa City area,” said Lisa Shileny, president and chief executive officer of Hills Bank and Trust Company in a news release. “It positions us to support our employees, customers, and communities well into the future.”
The acquisition is one of several developments reshaping the nearly 400-acre former ACT campus, which is bordered by Scott Boulevard, Dodge Street and Interstate 80. ACT, Inc. sold the property in April 2025 to JNB Iowa City, LLC and JNB Campus, LLC for a combined $17.5 million. The broader redevelopment effort, led by a joint venture between Iceberg Development Group and Salida Partners, envisions a walkable community of senior and mixed-use housing, food retail, health and wellness, education and natural areas.
The Ferguson Center — a 29,093-square-foot former conference space and cafeteria that is part of the Hills Bank acquisition — has been described by developers as a potential hub for the emerging neighborhood.
Founded in 1904, Hills Bank and Trust Company is an independent, locally owned community bank serving eastern Iowa.
