PennyMac Mortgage Investment Trust (PMT) earned $53 million in the first quarter of 2013, compared to $49 million the previous quarter and $19 million from the same time period last year.

Net income was up 8% from the prior quarter, to $53.3 million.

Gain on investment portfolio was up 68% from the last quarter to $64 million.

Meanwhile, correspondent acquisitions were down 15% from the previous quarter to $8.5 billion.

Additionally, distressed mortgage loan purchases accounted for $366 million in unpaid principal balance, while the mortgage servicing portfolio reached $17 billion UPB.

“First quarter results reflect the ongoing recovery of the housing market and increased competition within the mortgage market,” said Stanford Kurland, chairman and chief executive officer of PennyMac.

He added, "Home prices have continued to stabilize, with many of the previously hardest hit areas showing appreciating home prices. Many loans in our portfolio are located in these areas, which contributed to the valuation gains."