A nonlocal smeared-cracking finite element model is used to simulate tensile fracture in mortar notched-beam specimens. The nonlocal model resolves the distributions of damage and energy consumption within the fracture process zone, as well as accounts for variance in fracture energy along the ligament length. Results correlate well to experimental and analytical results given by other researchers for fracture over the central portion of the ligament. However, standard nonlocal averaging causes excess energy consumption in regions subjected to high strain gradients. To promote natural fracture development and realistic energy consumption near the pre-notch tip, the nonlocal averaging process is modified in this vicinity.