Bedford Federal Savings Bank
About Us






Bedford Federal Savings Bank was originally organized, September 20, 1926, as a state chartered loan and savings association, known as Bedford Rural Loan and Savings Association, in the insurance office of Frank D. Hatfield, which was in the Masonic Temple, with capital stock of $50,000 and common stock of $450,000. The incorporators and first directors were:


Frank D. Hatfield, insurance agent and owner of Hatfield Motor Sales,

John A. Rowe, limestone mill owner, city councilman, and a director of Bedford National Bank,

E. B. Crowe, five-term U.S. Congressman, businessman, director and later President of Stone City Bank,

H. D. Martin, President of Stone City Bank,

John M. Wells, co-owner of the Leader Store and director of Citizens National Bank, and

J. Herschel Moore, lumber merchant


The bankers were involved because they wanted a local institution to make mortgage loans and their commercial banks didn’t make home mortgage loans back then.


In August of 1933, the Board of Directors began to consider converting to a federally chartered savings and loan association.  In December 1933, after discussions with the Department of Financial Institutions of Indiana and the Federal Home Loan Bank of Indianapolis, the Board of Directors applied for a federal charter to organize Bedford Federal Savings and Loan Association under the Home Owners Loan Act of 1933, to acquire the assets of Bedford Rural Loan and Savings Association.  The Association’s charter was issued by the United States government on April 25, 1934.  At that time, the Association was moved to 1020 15th Street to a building owned by Frank D. Hatfield and Herschel Moore. 


The association shared the building with Hatfield Motor Sales, Hatfield Insurance Agency and Public Service Company of Indiana, (later the building was home to Schloot-Dougherty Furniture and then Carriage House Furniture before it was acquired by the Bank in 1998 and demolished to make room for expansion; it is now part of the Bank’s east parking lot). 

Schloot-Dougherty Furniture


The first board of directors for Bedford Federal Savings and Loan Association included:

Frank D. Hatfield, insurance agent and owner of Hatfield Motor Sales,

John A. Rowe, limestone mill owner, city councilman, and a director of Bedford National Bank,

H. D. Martin, President of Stone City Bank

Roger Pearson, Ingalls Stone Company    

J. Walter Malott, county surveyor and city engineer

Dr. L. H. Allen, local physician and a director

Arthur T. Hughes, owner of the Bedford Cut Stone Company

On January 5, 1935, Arthur T. Hughes resigned from the Board of Directors and William E. Clark, local attorney and a director of the Bedford National Bank, was appointed to serve in that capacity. 


In 1935 and 1936, the association purchased $79,000 in loans from the failed Mechanics Building and Loan Association of Terre Haute. 


In February 1941, Philip A. Hatfield, son of Frank D. Hatfield, was appointed assistant secretary of the association.


At the board meeting held June 2, 1941, Philip A. Hatfield was appointed to the board to fill the vacancy created by the death of J. Walter Malott.


John A. Rowe died on September 2, 1941 (he served as President of the Association for its first 15 years) and Dr. L. H. Allen was elected President.  Radke Schmidt, a local contractor, was appointed to fill the vacancy on the board. 


In 1947, the association purchased and renovated the building located at 1011 15th Street for their offices. (The building is now occupied by Lawrence County Abstract Company.)


1011 15th Street


In 1948, Roger Pearson resigned from the board and was replaced by cattleman, Spaine Armstrong.


In 1949, Frank D. Hatfield passed away and his son, Philip A. Hatfield, was appointed Secretary-Treasurer and Morris Denny, owner of the 400 Cab Company and later the Maytag distributor, was appointed to fill the vacancy on the board.


In 1953, William E. Clark died and his vacancy was filled by attorney and former Mayor, Clarence J. Donovan, who was also appointed counsel for the association.


In 1954, H. D. Martin passed away and his vacancy was filled January 19, 1955 by Joseph E. Kenworthy, a civic leader and businessman.


Philip A. Hatfield resigned from Bedford Federal Savings and Loan Association at the board meeting held December 19, 1960 to accept a position at Kalamazoo Federal Savings and Loan Association.  At the same meeting, Robert W. Short, a graduate of the I.U. Law School and a practicing attorney, was elected Executive Vice-President and Secretary; he was also elected to fill the board vacancy created by the resignation of Morris Denny on June 13, 1960. 


Radke Schmidt died on May 19, 1961.  L. Keith Peterson, local businessman and former city councilman and R. Byron Pearson, Manager of Public Service Indiana were elected to fill the two board vacancies at the meeting held July 10, 1961.


The association purchased the Dr. Short property on the corner of 15th and K Street at public auction on January 12, 1963 for $40,200. 



Originally built as a one-story brick home on the corner of 15th & K Streets around 1836 by Col. McLane’s daughter, Ann, and her husband Alexander Hamilton Dunihue.  As the Dunihue family increased in size the house was enlarged and an upper floor was added.  The brick was later purchased by Dr. R.B. Short to be used as his residence and office.  This site is the current home of Bedford Federal Savings Bank.


The Dr. Short house was razed in May of 1963.  The south half of the lot was rented temporarily to Hilderbrand Motors and Jackson Super Service. 




        Jackson Super Service facing K Street just north of the alley


Original Jackson Tire & Battery Service Circa 1930s or 1940s located on same site

R. B. Pearson accepted a new position with Public Service Indiana in Columbus, Indiana and resigned from board effective August 1, 1963.


Paul E. Spoonmore, of Oolitic, was hired as Assistant Bookkeeper on August 10, 1964.


The architectural firm of Daniels & Zermack Associates of Ann Arbor, Michigan was engaged March 25, 1965 to design a new office for the association.   On September 1, 1965 the board accepted the bid of $165,503 from Robert L. Herthel, local contractor, to construct the new bank.

Concept drawing of the new Bedford Federal Savings and Loan to be built on the corner of 15th and K Streets on the previous site of the Dr Short residence


The association moved into the new offices on June 21, 1966 and sold their old building (now Lawrence County Abstract) to Roman and Gladys Pfeffer.

Newly completed Bedford Federal Savings & Loan Association, 1030 15th Street


Dr. L. H. Allen died July 9, 1966 and at a board meeting held the same day, Robert W. Short was elected President.


On August 8, 1966, Walter E. Louden, local businessman, was elected to fill the vacancy of Roger B. Pearson, and William M. Quigg, radio station manager, was elected to fill the vacancy created by Dr. Allen’s passing.


In 1971, the board started discussions on the purchasing of additional real estate for future expansion of parking facilities, particularly at such time as it might be necessary to enlarge the present office building.  In January 1972, the association purchased the Odd-Fellows building at 1029-1031 16th Street for $40,000 and the adjacent Palmer-Smith building for $21,500. 

1984 Aerial view of the northeast corner of 16th and K Streets


Jack A. Kenworthy, I.U. graduate and former U.S. Army officer, was hired in August 1, 1972, as a mortgage loan officer.


Frank N. Chase, owner of Chase Chevrolet, was elected to fill the vacancy created by the death, January 18, 1973, of Spaine Armstrong.


In June 1973, the Board began providing medical and hospitalization insurance to its seven full-time employees at a cost of $102.73 per month.


In June 1974, the association signed an agreement to begin data processing on-line with the data center of the Federal Home Loan Bank of Chicago, effective January 1, 1975.


William M. Quigg submitted his resignation effective November 21, 1974, because he was moving to Beaumont, Texas.   Jack A. Kenworthy was elected to fill his vacancy at the board meeting held December 9, 1974 and at the annual meeting held January 15, 1975, Jack A. Kenworthy was elected Secretary.


The demolition of the Odd-Fellows building and the Palmer-Smith building commenced the week of January 12, 1976 at a cost of $15,250 by the Stone City Construction Company.


During November 1976, the board began discussing the need to expand the association’s facilities due to its rapid growth and signed a contract in January, 1977, with Daniels & Zermack Associates of Ann Arbor, Michigan to design the addition.  On June 13, 1977, the association accepted the bid of $303,080 from Superior Lumber Company, Bloomington, Indiana to double the size of the existing bank, add new parking facilities, and to add additional drive-up facilities.


May 9, 1977, L. Keith Peterson resigned from the board as a result of his accepting a position as internal auditor at Citizens National Bank.   Judy Elliott, I.U. graduate and co-owner of Elliott Stone Company, was elected to fill his vacancy at the board meeting held August 8, 1977.


The addition was completed and occupied during July 1978. 


Walter E. Louden served as a director until the annual meeting held January 17, 1979, when radio station owner L. Dean Spencer was elected to fill his position.   Mr. Louden was not allowed to continue to serve as a director due to regulations passed by the Federal Home Loan Bank that limited the number of director interlocks with correspondent banks (Citizens National Bank) to one, which Clarence J. Donovan already held.


Shelley Kern, recent I.U. graduate, began working at the bank July 1, 1980 as the Assistant Controller, due to the pending retirement of long-time Controller Paul Spoonmore.


Frank N. Chase resigned as a director on October 11, 1982 since he had accepted a position with the Bedford National Bank.


John A. Williams, Mayor of the city of Bedford, was elected to fill the vacancy on the Board of Directors at the annual meeting held January 19, 1983. 


Jeffrey J. Lytton, local banker, I.U. graduate and former Navy pilot was hired February 16, 1987 as a Senior Vice President due to the pending retirement of Robert W. Short.


Robert W. Short submitted his resignation as President, but remained on the board, effective May 1, 1988, having served as managing officer since December 19, 1960.  Jack A. Kenworthy was elected President, effective with Robert W. Short’s retirement, at the Board meeting held April 11, 1988.


Clarence J. Donovan died January 8, 1990 and Gordon K. Emery, I.U. Law School graduate and practicing attorney, was elected at the meeting held February 19, 1990 to fill the vacancy.


On January 17, 1990, a federal savings bank charter was adopted at the annual meeting and was approved by the Office of Thrift Supervision in Washington, D.C.   This charter allowed the name change to Bedford Federal Savings Bank, which was much more descriptive of the products and services offered.


During 1994, an addition was added to the south end of the bank to house a generator and an elevator.  Also, the basement was finished into additional office space and the accounting department was moved into the new area.



          January 31, 1994 during renovation

November 2, 1994 after renovation was completed

In November of 1995, President Kenworthy met with Steve Hale, owner of the Carriage House Furniture Store, about the purchase of his building by the bank for future expansion. 


Carriage House Furniture in 1995

(Previously Schloot-Dougherty Furniture)


Those negotiations continued into 1996.  In December 1996, the bank agreed to purchase the Carriage House Furniture Store for $200,000, with the closing to be in 1998.  In July 1996, the bank tried to buy the Bank of Mitchell’s branch that was located at 1227 James Avenue on Bedford’s west side, but was unsuccessful.  In December of 1996 the bank entered into an agreement to buy a 1.93 acre parcel from the Parker family on the John Williams Boulevard for $275,000 as a future branch location. 


Joseph E. Kenworthy passed away on December 16, 1996.    His vacancy was filled May 19, 1997, by the election of State Senator Becky Skillman.


Michael Shea Hooten, recent USI graduate, was hired January 5, 1998 as Staff Accountant.


During February 1998, the Carriage House Furniture Store building was demolished by McIntyre Brothers for a cost of $54,000.   The bank’s drive-up area was completely remodeled and enlarged to accommodate four drive-up lanes. 


Demolition of Carriage House Furniture in March 1998


Bedford Federal Savings Bank after 4 drive up lanes and new parking lot completed on previous site of Carriage House Furniture


The bank’s first website,  launched March 15, 1999, was just an informational website.


At midnight on December 31, 1999, Y2K passed without incident, due to months of diligent preparation.  For several months preceding January 1, 2000 bank personnel spent hundreds of hours testing and modifying the bank’s hardware and software systems to make sure that all were Y2K compliant.


 Judy T. Elliott resigned July 15, 2002 and her vacancy was filled at the next meeting by the election of local businessman Ralph Morgan.


A fully transactional website, was launched November 1, 2002, with internet banking and bill payment.


Susan E. Gales, local C.P.A. and very involved community volunteer, was hired April 28, 2003 to be the bank’s financial analyst.


Robert W. Short retired from the Board on February 29, 2004, after serving over 43 years and accepted Director Emeritus status. 


Becky Skillman resigned from the Board effective, December 31, 2004, due to her election as the Lieutenant Governor of the state of Indiana.


Early in 2005, the bank was contacted by Horne Properties, to purchase the 1.93 acre parcel it owned on John Williams Boulevard, so they could develop a Wal-Mart Super Center strip mall.   After negotiations, Horne Properties purchased two acre lots from Bloomington Supply Corporation across the street from the entrance to the proposed development and traded those lots for the parcel that bank owned.


David Gratzer, who attended Ball State University and is a well-known local golfer, was hired as a Loan Officer in February 2006.


On March 21, 2006, retired banker and local farmer Jack L. Giles, was elected to serve on the board of Directors.


In October of 2006, financial consultant Michael Bellush was hired to open a new division for the bank, Bedford Federal Financial Services, to offer customers non-traditional investment opportunities, such as mutual funds, stocks, bonds, and more diverse IRA options.

Robert W. Short passed away May 4, 2008 after a short battle with cancer.


The bank was approached by Dave Flinn, of Flinn Farms, in May 2008, to purchase the two lots the bank owned at the intersection of Williams Park Drive and John Williams Boulevard. The bank sold the two lots to Flinn Farms, in June 2008, for $450,000, since the bank had acquired the Sear’s strip center in May of 2008.


The bank opened its first full service branch in October 2009, and named Dana Sasser Vice President and branch manager.


2955 John Williams Blvd., Bedford IN 47421

Shelley Kenworthy and Jeffrey J. Lytton were named Executive Vice Presidents; Shea Hooten Senior Vice President; and David Gratzer, Assistant Vice President in October 2009.


In March 2010, Jeff Lytton announced his retirement to be effective in April 2010.


Jason Terrell, a Purdue undergraduate, and an I.U.P.U.I. graduate, with a Masters in accounting, began working March 22, 2010.


On April 1, 2010, Barry Ransom and Justin Duncan opened the newest division of the bank, Bedford Federal Mortgage Services, so the bank can offer its customers all types of secondary market loans such as VA, Rural Housing, and FHA mortgages.


2622 West 16th Street, Bedford IN 47421

This history was completed by Jack A. Kenworthy on May 7, 2010.

 1030 15th Street, Bedford IN 47421 - May 2010