Numerical modeling of local formability, such as hole-edge cracking and shear fracture in bending of AHSS, is one of the challenging issues for simulation engineers for prediction and evaluation of stamping and crash performance of materials. This is because continuum-mechanics-based finite element method (FEM) modeling requires additional input data, “failure criteria” to predict the local formability limit of materials, in addition to the material flow stress data input for simulation. This paper presents a numerical modeling approach for predicting hole-edge failures during static bend tests of AHSS structures. A local-strain-based failure criterion and a stress-triaxiality-based failure criterion were developed and implemented in LS-DYNA simulation code to predict hole-edge failures in component bend tests. The holes were prepared using two different methods: mechanical punching and water-jet cutting. In the component bend tests, the water-jet trimmed hole showed delayed fracture at the hole-edges, while the mechanical punched hole showed early fracture as the bending angle increased. In comparing the numerical modeling and test results, the load-displacement curve, the displacement at the onset of cracking, and the final crack shape/length were used. Both failure criteria also enable the numerical model to differentiate between the local formability limit of mechanical-punched and water-jet-trimmed holes. The failure criteria and static bend test developed here are useful to evaluate the local formability limit at a structural component level for automotive crash tests.