The Polar Bears improve to 2-0, while the Wolves fall to 1-1.
Nate Lieb scored 18 points and Jake Cannan added 14 for Ohio Northern.
Badenhop was named the Tournament MVP and Lieb was named with him to the All-Tournament Team.
The Polar Bears hit on 33-of-63 field goals for 52.4 percent, while holding the Wolves to 25-of-59 shooting for 42.4 percent. ONU his 13-of-28 from three-point range for 46.4 percent and UMD made only 2-of-17 from beyond the arc for 11.8 percent.
Northern used a 18-4 run, keyed by three three-pointers by Lieb, to turn a 50-50 tie game into a 68-54 lead with 11:36 to play.
Dearborn pulled within 68-60, but ONU answered with a 10-2 run to extend its lead to 78-62 with 5:48 remaining.
"Our guys hung in there against a scrappy team," ONU head coach Jeff Coleman said. "We did a much better job defensively in the second half and that was the difference. We got good play out of everybody and won a tournament with four very talented teams."
Northern grabbed its largest lead of the day at 85-66 on a basket by Sean Kobilis with 2:02 to play.
Seven different ONU players scored in the first half as Northern led 46-41 at halftime. The Polar Bears made 17-of-30 field goals in the first half for 56.7 percent to 15-of-30 (50 percent) for UMD.
Down 19-17, Northern went on a 19-4 run to take a 36-23 lead with 5:04 left in the half. The Wolves outscored ONU 13-5 over the final 2:56 of the half to pull within 46-41 at intermission.
The Polar Bears reached the finals with a 74-66 semifinal victory over DePauw (Ind.) Friday night. UMD, a NAIA school, defeated No. 8-ranked Albion 88-77 in the other semifinal game.
Albion topped DePauw 78-70 in the consolation game.
The Polar Bears will return to action next Friday and Saturday at the San Francisco Classic in Belmont, Calif.
ONU will face The Masters (Calif.) Friday at 9 pm EST and will play Husson (Maine) Saturday at 9 pm EST.
The Polar Bears will open the home portion of their schedule Saturday, Dec. 30, against Mount Union at the ONU Sports Center.