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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.
That run of three straight birdies gave Palmer a two-stroke lead. His run ended on the seventh, where he tripped to a bogey to cut his margin to one. Palmer two-putted for par on the final two holes to cap his round.
"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."
NOTES: This event needed a Monday finish last year after frost delays pushed everything back...Defending champion Mark Wilson is tied for 50th at minus- one...Former British Open champion Stewart Cink struggled to seven bogeys, three double-bogeys and a birdie in a round of 12-over 83...Forty-two of the 132 players that started did not finish their rounds.
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