BEDFORD — A business can survive for 100 years because it adapts, but a locally owned business can become something even bigger — a familiar name, employer, neighbor, and community supporter.
Bedford Federal Savings Bank’s story began in 1926 with a simple goal: helping local residents become homeowners.
A group of Bedford business and community leaders organized the institution on September 20, 1926, as the Bedford Rural Loan and Savings Association. At the time, commercial banks generally did not offer home mortgage loans, creating a need for a local institution to help residents finance their homes.
Among the founders were local business owners, bankers, and civic leaders, including Frank D. Hatfield, John A. Rowe, E.B. Crowe, H.D. Martin, John M. Wells, and J. Herschel Moore. The association began operations in Hatfield’s insurance office inside the Masonic Temple, with $50,000 in capital stock and $450,000 in common stock.
The institution received a federal charter in 1934 and became Bedford Federal Savings and Loan Association. Over the following decades, the bank continued to grow alongside Bedford, moving into its current 15th Street location in 1966 and expanding the facility in the 1970s.
As banking changed, Bedford Federal changed with it. The institution embraced electronic processing in the 1970s before eventually adding online banking, bill pay, mobile banking, and other modern services. In 1990, it adopted the name Bedford Federal Savings Bank, and in 2014, it became an Indiana-chartered mutual savings bank.
While technology and services have evolved dramatically since 1926, the foundation its founders established has remained: a financial institution created by local people to serve local people.
Chairman of the Board and former Bank President Jack Kenworthy represents a legacy of dedication to the Bank that dates back to 1955, when his family first became involved. An Indiana University graduate and former U.S. Army officer, he began his own tenure in 1972 as a mortgage loan officer, continuing the tradition of service and leadership.
“The bank’s been very important to me. I’m just thrilled to reach this achievement. It’s a lifetime achievement,” said Kenworthy.
Shea Hooten’s career at Bedford Federal Savings Bank started in 1998 in the accounting department. Over the years, he gained experience in every department, and by 2014, when former President Jack Kenworthy retired, Hooten was ready to step into the role.
“I feel honored to have been a contributor to the Bank’s history of leadership for 28 years, and 13 years as President. The Bank is on strong financial footing and growing,” said Hooten. “My team is ever ready to maintain the highest level of service and state-of-the-art products long into the future.”
The bank’s commitment to local roots would become an important part of Bedford Federal’s identity for the next century—and extend well beyond the bank’s walls.
For Bedford Federal, being a community bank has always meant more than providing financial services. Throughout its history, the institution has invested in the people, organizations, and communities it serves through charitable giving, volunteerism, and partnerships.
In 2023, Bedford Federal donated $165,000 to more than 100 organizations. Among the largest recipients were the Boys & Girls Club of Lawrence County, North Lawrence Community Schools, Lawrence County 4-H, and the Lawrence County Community Foundation, with additional support reaching organizations throughout the county.
In 2025, Bedford Federal donated $200,000 to local organizations and plans to contribute at least $300,000 in 2026, bringing total donations over the past five years to $1,000,000 for more than 125 different organizations.
Bedford Federal is committed to supporting organizations like the Boys and Girls Club of Lawrence County, 4-H, LCCF, BRI, LCEGC, Agape Kids House, IU Health, IBA, the Chamber of Commerce, and many local churches.
Beyond donating money, Bedford Federal has several employees and board members who have donated thousands of hours to better their community. Their volunteer hours and hard work do not go unnoticed and have helped the neighborhoods, schools, nonprofits, and community organizations that make up Lawrence County.
“The residents of Lawrence County who have chosen to partner with Bedford Federal are paramount to the bank’s success. Without their trust and confidence, the bank could not and would not grow and thrive,” said Hooten. “Every dollar deposited is a vote of confidence in Bedford, and we do not take it for granted.”
Bedford Federal stands as one of the few remaining locally owned banks in the state, a testament to the unwavering time, effort, and dedication invested in its growth and success.
“I hope to see the bank continue to grow and service the community and stay very involved in the community organizations that we’re currently involved in and support,” said Kenworthy.
