Item 8.01 Other Events.

On June 1, 2012, Tower Financial Corporation (the "Company") paid all of the deferred interest payments on its outstanding trust preferred subordinated security TCT3 in the amount of $1.5 million, which includes all amounts due through June 1, 2012. The Company also plans to pay all of the deferred interest payments on its outstanding trust preferred subordinated security TCT2 in the amount of $763,929 on June 30, 2012, which will include all amounts due through that date. The Company received permission on May 11, 2012 from the Federal Reserve Bank of Chicago to make both of these payments on their respective due dates.

In February 2010, the Company announced that it was exercising its right to defer regularly scheduled interest payments on its $17.5 million of junior subordinated notes relating to its trust preferred securities. From the time it deferred interest payments, the Company accrued the expense of each deferred interest payment at the normal rate on a compounded basis. Therefore, the cash payment will not have any impact on the Company's earnings for the three and six months ended June 30, 2012.