Media           Christopher Capot           Investor          John V. Brennan
Contact:        (203) 578-2461              Contact:          (203) 578-2335


       WEBSTER FINANCIAL CORPORATION RECEIVES FEDERAL REGULATORY APPROVAL
                           TO PURCHASE DS BANCOR, INC.

WATERBURY,  CONNECTICUT,  December  30,  1996 -- Webster  Financial  Corporation
(NASDAQ:  WBST) has received approval from its primary regulator,  the Office of
Thrift  Supervision,  to purchase DS Bancor Inc.,  the holding  company of Derby
Savings Bank. When the merger is completed,  DS Bancor shareholders will receive
1.14158 shares of Webster common stock for each share of DS Bancor common stock.
Webster and DS Bancor  shareholders  will vote on the  proposed  acquisition  in
separate  shareholder meetings on January 30, 1997. The Banking Commissioner for
the State of Connecticut must also approve the acquisition.

"Our plans to acquire DS Bancor, Inc. are proceeding as scheduled," said Webster
Chairman and Chief  Executive  Officer James C. Smith.  "This  acquisition  will
expand  Webster's  franchise  and  further  solidifies  Webster's  position as a
strong,  independent,  Connecticut-based  bank  with a bright  future."  Webster
anticipates closing the transaction in the first quarter of 1997.

Webster Financial Corporation,  headquartered in Waterbury,  Connecticut, is the
holding company for Webster Bank.  Webster has 65 banking offices extending from
the  Massachusetts  border  through  central  Connecticut  to Long Island Sound.
Webster  provides  financial  services to individuals and businesses  throughout
Connecticut.


This press release shall not constitute an offer to sell or the  solicitation of
an offer to buy or shall there be any sale of  securities  in any state in which
such offer,  solicitation  or sale would be unlawful  prior to  registration  or
qualification under the securities laws of any such state.