Initiation and development of a M 1.0 class flare of June 12, 2014, was observed by space and ground-based telescopes, including EUV and X-ray imaging spectroscopy by IRIS and RHESSI, and high-resolution optical imaging by 1.6 m New Solar Telescope (NST). Analyzing the NST data, we found small-scale loop-like structures in the region of the magnetic field Polarity Inversion Line (PIL), the emergence and interaction of which caused photospheric brightenings temporarily coinciding with hard X-ray impulses. Detailed studies of the PIL region reveal signatures of photospheric plasma downflows and dissipation of electric currents. The reconstructed magnetic field topology shows a bundle of lines connecting the PIL region with the flare ribbons which were places of chromospheric evaporation observed by IRIS. The observations suggest a scenario with the primary energy release processes located in the low atmospheric layers of the PIL, energizing the overlying large-scale magnetic structure and causing “gentle” chromospheric evaporation.