Playing better ball format, the pair picked their way around TPC Louisiana in Avondale to match the tournament record with a 58. The 14-under combined round puts them one shot ahead of Davis Thompson and Austin Eckroat, with a host of teams a further shot back on 12 under.
Smalley's hot putter got the pair off to a strong start, rolling in a 19-foot eagle put on the par-5 second right after sinking a 16-footer on the first. The pair of 29-year-olds then combined to birdie ten of their final 14 holes.
"We've got a long way to go before the tournament is over, but it's a fun format," said Smalley.
"It's nice to kind of mix it up a little bit, to have a team event like this instead of doing the same monotonous thing that we do week in and week out, just kind of doing our own thing, playing our own ball."
Matt Fitzpatrick, fresh off his victory at last week's RBC Heritage, teamed up with his brother Alex. The Englishmen got to nine under with Matt's three straight birdies on the 15th through 17th holes.
But in a cruel sense of brotherly irony, both found the water with their second shots into the par five 18th and ended up closing with a bogey.
"Really disappointing way to end with two balls in perfect position," said Matt Fitzpatrick.
"It's not good enough, really."
Finally, the star-studded duo of Shane Lowry and Brooks Koepka shot 66 and are outside the top 40 and in danger of missing the cut.