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Webb Simpson, a two-time winner last year, carded a six-under 65 and is alone in second place. Harrison Frazar, Kevin Na, Chez Reavie, Derek Lamely and Jarrod Lyle are tied for third after posting five-under 66s.
They were joined there by Bubba Watson, Spencer Levin and Jason Dufner. Watson and Levin both finished 15 holes, while Dufner is through 13.
Palmer and Simpson both started their rounds on the back nine. Palmer poured in a 14-footer for birdie on the 10th. He birdied both par-fives, 13 and 15, to move to minus-three.
Palmer made it two in a row with a birdie on the first. A 13-foot birdie putt on the fourth gave Palmer a share of the lead. He followed with a 12-footer for birdie on five and made it three in a row with a 10-foot birdie effort on the No. 6.
"I had two great days preparing on Tuesday and Wednesday," said Palmer, who missed the cut in his first two events this year. "Getting the old putter back out, and getting the old feelings I've had in the past, the way the swing feels and the way the body feels, it was set up for a good day today."
Around the turn, Simpson sank a 12-footer for birdie on one and moved atop the leaderboard as he stuffed his approach inside a foot on the second.
"I really didn't feel like I hit a bad shot. I hit a chip that released a lot more than I thought it would, but other than that it was solid," Simpson said. "I think the thing that kind of held me in there all day was my putting. I made a bunch of putts, so I'm excited about that."
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