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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.
The 35-year-old dropped his approach within 10 feet at the 18th and converted that birdie effort to get within two of Simpson.
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.
Simpson climbed to minus-seven when he sank a 16-foot birdie try on the fifth. His drive landed in the rough on the sixth and that led to Simpson's only bogey of the day.
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