Drain and rinse the soaked navy beans. In a large pot, cover the beans with fresh water and bring to a boil. Reduce heat and simmer for about 1 hour until tender.

In a Dutch oven, heat olive oil over medium heat. Add diced onion and cook until translucent, about 5 minutes. Stir in minced garlic and cook for an additional minute.

Add the cooked beans, ketchup, brown sugar, apple cider vinegar, Worcestershire sauce, smoked paprika, mustard powder, black pepper, salt, and chopped bacon to the Dutch oven. Mix well.

Preheat your smoker to 225°F (107°C). Transfer the bean mixture to a smoker-safe dish and smoke for about 2 hours, stirring occasionally, until the flavors meld and the beans are thickened.