Usually water in an automatic does kill them fairly fast,but I've seen a few that survived...
Here's a tale of a friends frustration with his TH350 --one night it died,lost all gears,forward and reverse..he went to the salvage yard we dealt with,and bought another one..they said it worked fine when the car was hauled in...(didn't say how many years before though!)..
We installed it and it worked great,shifted nice,no slippage,and only one bummer--the park pawl was stripped,and we didn't realize it until we parked on a hilly driveway at his house,and the car rolled into his dads car a few minutes after we'd gone in the house..
..It didn't do any damage ..
Back then we were not aware you could fix that issue without pulling the tranny out,and we removed it, and went back to the salvage yard for another one..
The second tranny they gave us we installed, had no reverse!...
...
We decided to drop the pan and do a fluid & filter change..
When we got the pan off,it was rusted to hell inside,the valve body was rusty,and a thin layer of the metal in the same shape as the pan,was stuck to the filter,like a layer peeled off the bottom of it due to the water & rust!...changed the filter and fluid--same thing..no reverse..
Went back again,they gave us another one to try--said it was the last one they had that was supposedly "good"..they felt bad for us and gave us some cash back to cover the cost of the wasted ATF and the filter..
Put that one in,and it slipped badly on takeoffs,and third gear barely engaged,if you stepped on the gas more than 1/4 throttle,the clutches would slip..
We dropped the pan on that one,and were surprised to see the same thing--a thin layer of the pan rusted off the bottom,and was blocking the fluid to the filter...changed the filter & fluid,and no improvement..tried swapping the modulator,no change..JUNK!..
We ended up going back and getting the first transmission we brought back again that had no park,and installed it again...by now we had it down to like 1-1/2 hours lying on our backs in his driveway.....my friend then took the car to a transmission shop and had them fix the park pawl,he had heard after we yanked it out the first time you can fix them "in the car",but was unwilling to attempt it himself...
The tranny shop manager said when he picked up his car--"Man--that thing must have been in a flood--the pan was so rusty,a layer of it was stuck to the filter!--we flushed it out and put another good used pan on it for you...
We then told him about the other two transmissions that were in the same shape we tried,and he said "wow--THREE times you put them in "?--"you want a JOB"?..
That "first" transmission did end up surviving ,it worked great the whole time my friend had the car ,a '72 Buick Skylark--many hole shots and burnouts too..
..
Here's a tale of a friends frustration with his TH350 --one night it died,lost all gears,forward and reverse..he went to the salvage yard we dealt with,and bought another one..they said it worked fine when the car was hauled in...(didn't say how many years before though!)..
We installed it and it worked great,shifted nice,no slippage,and only one bummer--the park pawl was stripped,and we didn't realize it until we parked on a hilly driveway at his house,and the car rolled into his dads car a few minutes after we'd gone in the house..
..It didn't do any damage ..Back then we were not aware you could fix that issue without pulling the tranny out,and we removed it, and went back to the salvage yard for another one..
The second tranny they gave us we installed, had no reverse!...
...We decided to drop the pan and do a fluid & filter change..
When we got the pan off,it was rusted to hell inside,the valve body was rusty,and a thin layer of the metal in the same shape as the pan,was stuck to the filter,like a layer peeled off the bottom of it due to the water & rust!...changed the filter and fluid--same thing..no reverse..
Went back again,they gave us another one to try--said it was the last one they had that was supposedly "good"..they felt bad for us and gave us some cash back to cover the cost of the wasted ATF and the filter..
Put that one in,and it slipped badly on takeoffs,and third gear barely engaged,if you stepped on the gas more than 1/4 throttle,the clutches would slip..
We dropped the pan on that one,and were surprised to see the same thing--a thin layer of the pan rusted off the bottom,and was blocking the fluid to the filter...changed the filter & fluid,and no improvement..tried swapping the modulator,no change..JUNK!..

We ended up going back and getting the first transmission we brought back again that had no park,and installed it again...by now we had it down to like 1-1/2 hours lying on our backs in his driveway.....my friend then took the car to a transmission shop and had them fix the park pawl,he had heard after we yanked it out the first time you can fix them "in the car",but was unwilling to attempt it himself...
The tranny shop manager said when he picked up his car--"Man--that thing must have been in a flood--the pan was so rusty,a layer of it was stuck to the filter!--we flushed it out and put another good used pan on it for you...
We then told him about the other two transmissions that were in the same shape we tried,and he said "wow--THREE times you put them in "?--"you want a JOB"?..
That "first" transmission did end up surviving ,it worked great the whole time my friend had the car ,a '72 Buick Skylark--many hole shots and burnouts too..
..