Kite, 62, shot a 5-under-par 67 at the Del Monte course. John Cook had the same score on the same course, and both he and Kite will play Saturday at the host Pebble Beach Golf Links.
All those who play Sunday will compete at Pebble Beach, where Kite shares the course record of 62.
Mark McNulty, Loren Roberts and Tom Pernice Jr. all shot 68s to tie for third. Among those knotted at 69 were Mark Calcavecchia, Corey Pavin, Brad Bryant, Gary Hallberg, Peter Senior and Bill Glasson.
Among the top 11 players, the only one to compete at Pebble Beach Friday was Bryant.
Kite has won 10 times on the Champions Tour, but the last of those victories came 4 years ago.
Notable deaths of 2014 [PHOTOS]