BRT Realty Trust on Tuesday offered to buy Peekskill Financial Corp. for $17.25 per share, or $49 million, in cash.

BRT, a mortgage real estate investment trust affiliated with Gould Investor LP, which owns 9.29% of Peekskill, said the proposal was subject to due diligence and the execution of a definitive merger agreement. Peekskill, parent of First Federal Savings Bank of Peekskill, N.Y., has $200 million of assets. BRT said it would retain Peekskill's corporate structure, board of directors, management team, and employees, and would add two people to its board.

Trading in Peekskill shares was halted with the stock at $16.50, up 62.5 cents.

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