IOWA CITY — Hills Bank and Trust Co. was named as the University of Iowa’s financial services provider Friday, as part of a five-year contract.

The contract provides for two Hills Bank campus branch locations — one each at the Iowa Memorial Union and at the Hospitals and Clinics — the university said.

“It is anticipated that the transition to Hills Bank will begin immediately and take place over the next few months,” the university said in a prepared statement.

A five-year contract with the University of Iowa Community Credit Union expires Dec. 31.

The university noted the new agreement with Hills, Iowa-based Hills Bank specifies that all current UI and UI Hospitals and Clinics surcharge-free ATMs will remain surcharge-free.

“In addition, this contract provides the option for students and employees to link their university ID card with a Hills Bank checking account, which enables them to use their card for ATM and PIN-based debit transactions,” the university said.

Five financial institutions submitted proposals, according to the university.