Rinse beans; cover with cold water in a large kettle or Dutch oven. Bring beans to a boil; simmer for 2 minutes. Remove from heat; cover and let stand for 1 hour. Stir in next 5 ingredients. Add meat; cover and simmer for 1 hour.
Remove meat and let stand until cool enough to handle. Dice, discarding fat. Combine beans, diced meat, and remaining ingredients. Pour bean mixture into a 2-quart casserole or bean pot. Cover and bake at 350° for 2 hours. Uncover and bake for 2 hours longer, stirring several times. Remove bay leaf before serving.
Serves 6 to 8.