PennyMac Mortgage Investment Trust's second-quarter profit grew to $29.6 million, or 79 cents a share, as the firm's correspondent lending and investment activities produced strong returns.

That compares to earnings of $19.1 million, or 65 cents a share, for the previous quarter.

The company's net investment income grew 38% from the first quarter, hitting $64.4 million. Meanwhile, purchases from PennyMac's correspondent lending segment grew 88% quarter-to-quarter, hitting $3.4 billion in unpaid principal balance.

Cash flow from PennyMac's investments also shot up 46% from the first quarter, hitting $116 million in 2Q.

The Moorpark, Calif.-based REIT's CEO and Chairman Stan Kurland noted during an earnings conference call that the "company successfully raised $201 million in new equity capital immediately deploying the proceeds in accretive investments."

He added that PennyMac's business model is allowing it to pursue opportunities available in today's mortgage market. The REIT noted that it acquired $402 million in unpaid principal balance of distressed mortgage loans.

"Investment income from financial instruments increased over 50% from the first quarter of 2012, driven largely by the increase in gains on our correspondent activity and on our whole loan portfolio," said Kurland. "Net gains on our distressed whole loan portfolio totaled $27.3 million. Correspondent lending generated another $18 million in gains from mortgage loans acquired for sale. PMT’s strategy continues to evolve with the current market environment and we believe the company is well-positioned to continue its growth."