Wafd

Two weeks later, Seattle-based WaFd Bank announced it had received approval for a previously announced $654 million acquisition of Luther Burbank Savings of Santa Rosa, Calif., which, like HomeStreet, had struggled under rising rates.

WaFd and HomeStreet are two very different banks.

WaFd, which was founded in 1917 as Ballard Savings and Loan, has more than 200 branches in eight Western states, including more than 70in Washington, and nearly $23 billion in assets.

For WaFd Bank, meanwhile, the interest rate chaos resulted in a buying opportunity.

For starters, WaFd Bank was less vulnerable to rate hikes: Back in 2005, the bank began moving away from fixed-rate loans and toward more variable-rate commercial loans, said CEO Brent Beardall.