Cook diced bacon in a dutch oven or soup pot set over medium-high heat to a desired crispness. Remove cooked bacon from the pot with a slotted spoon and set aside.
To the bacon grease add 1 tablespoon butter to melt.
To the melted butter, add sliced celery, carrots, and onion; cook for 4 minutes, or until veggies are crisp-tender.
Stir in the garlic and season with salt, pepper, thyme, and chili powder.
Stir in the ham and cook for 1 to 2 minutes, or until just heated through.
Add the beans; stir and cook for 1 minute.
Stir in chicken broth and add the bay leaf.
Bring to a boil.
Reduce heat to a steady simmer and cook for 15 minutes.