Riley, a former U.S. Ryder Cupper, completed 36 holes at 9-under-par 133.
'I feel good,' said Riley, who practices here frequently. 'I played pretty solid again today.'
Gavin Coles fired a five-under 66 to move into a share of second place at 6- under-par 136. He was joined there by Scott Dunlap (68). Michael Bradley and Richard S. Johnson are one stroke further back at minus-5.
The start of the round was delayed 15 minutes due to fog and later delayed for eight minutes when the fog pushed back in.
Riley started on the back nine Friday and opened with four straight pars. He stumbled to a bogey on the par-4 14th but atoned for that mistake with a 20-foot birdie putt on 16.
The 34-year-old made the turn at 7 under as he birdied the 18th from 20 feet out. Riley made it two in a row with a birdie on the first.
Riley reeled off five straight pars from the second. He collected his final birdie on the par-5 seventh.
'I wanted a couple more birdies, but 3 under is still 3 under,' Riley stated. 'My whole goal is to be here (in the lead) on the back nine on Sunday. Hopefully I'll play well enough tomorrow so I'll have some shots to play with on Sunday.'
Coles traded a birdie for a bogey from the 10th. Birdies on 14, 16 and 18 helped Coles make the turn at minus-4.
The three-time winner on the Nationwide Tour birdied the fifth and seventh to gain a share of second place.
Dunlap also started on the back nine. He birdied the 12th, but gave that shot back with a bogey on No. 14. Dunlap atoned for that mistake with a birdie on the 15th.
He parred five straight around the turn before a birdie on the par-3 third. Dunlap got to minus-6 with a birdie on the ninth, his last.
Jason Allred fired a 5-under 66 to move into a share of sixth place at 4-under-par 138. He was joined there by Greg Chalmers, Jim Herman, Bret Guetz, Vance Veazey, Greg Owen, Travis Perkins and Matthew Every.
The cut line fell at 1-over-par 143 with 61 players moving on to the weekend. Among those missing the cut was 2007 champion Skip Kendall.