EXHIBIT 99.2

               WEBSTER ANNOUNCES ACQUISITION OF VILLAGE BANCORP

WATERBURY,  Nov.  11, 1998 -- Webster Financial Corporation (Nasdaq: WBST) today
announced  that  it  has  reached  a  definitive  agreement  to  acquire Village
Bancorp.  Inc.  (Nasdaq  VBNK),  the  holding  company  for Village Bank & Trust
Company,  for $23.50 per share in a tax-free, stock-for-stock exchange valued at
approximately $46.4 million.

Village is a  state-chartered  commercial bank  headquartered in Ridgefield with
total  assets of $230  million and six  banking  offices in the  communities  of
Danbury,  Wilton,  Westport,  and New Milford. With the additions of Village and
Essex-based  Maritime Bank & Trust,  announced on Nov. 4, Webster will have $9.5
billion in assets.

The acquisition is expected to contribute  positively to Webster's  earnings per
share in the first year.  The purchase price is  approximately  2.7 times Vilage
book value and 20.6 times annualized  earnings for the last six months.  Webster
expects to account for the transaction as a purchase.

The definitive  agreement , which has been approved by both companies' boards of
directors,  is  subject  to  approval  by  Village  Bancorp's  shareholders  and
regulatory  authorities.  Webster  expects the transaction to close in the first
quarter of 1999.

"Our  partnership  with Village Bank & Trust will extend  Webster's  presence in
Fairfield and Litchfield  Counties and strengthen our franchise,"  said James C.
Smith,  Webster chairman and chief executive officer.  "Customers of Webster and
Village Bank & Trust will benefit from having  greater  convenience  through our
extensive  network of branches and ATMs.  Village customers will enjoy a broader
selection of services."

Based on the terms of the agreement,  Village Bancorp  shareholders will receive
$23.50 per Village  common share if Webster's  stock price is at or below $27.50
per share during the pricing period. Above the ceiling price, the exchange ratio
fixes at 0.855 Webster shares. If Village shareholders prefer,  Webster will pay
up to 20 percent of the merger  consideration in cash rather than stock. Webster
intends  to buy back in  open-market  transactions,  the  equivalent  number  of
Webster shares issued to Village shareholders.

Robert V. Macklin,  Village Bank & Trust president and chief executive  officer,
said,  "Our board of  directors  believes a merger with  Webster best serves the
long-term  interests  of our  shareholders,  customers  and  employees.  We will
enhance our 






ability to provide  financial  services,  including  expanded  business  banking
services  as  well  as  trust  and  investment  management  services,  insurance
services,  and PC  banking.  Our  institutions  share  a  strong  commitment  to
Connecticut.  Following the merger,  Village Bank & Trust customers will be able
to  transact  business at all  Webster  Bank  locations  and will  benefit  from
Webster's broad product offerings."

"Village Bank & Trust  customers  should  continue to bank as they normally do,"
Smith said. "The transition to Webster's systems will be seamless, and customers
should not experience any inconvenience.

"Village Bank & Trust's six offices will remain open and continue to serve their
communities.  This merger nearly doubles the number of our branches in Fairfield
County,  gives us  another  branch in prime  Litchfield  County  community,  and
positions us for further expansion," Smith said.

                                    *  *  *


Webster  Bank was founded in 1935 and is a leading  Connecticut-based  financial
institution.  Webster delivers consumer banking,  commercial banking,  mortgage,
insurance, and trust and investment management services to individuals, families
and businesses.

Webster Bank has $9.2  billion in assets and operates  through a network of more
than 100 banking offices,  three commercial  banking centers,  and more than 174
ATMs, in addition to telephone  banking,  video banking and PC banking.  Webster
has the number one or number two deposit market share in its primary  markets of
Hartford, New Haven and Litchfield counties.

Webster is also the second-largest mortgage lender in Connecticut and a leading,
full-service  commercial lender.  Webster Trust, the bank's trust and investment
management  subsidiary,  is the  second-largest  bank  trust  company  based  in
Connecticut.  Webster's insurance subsidiary, Damman Insurance Associaes, is one
of the largest agenceis in the state.