Your understanding is incorrect. If the amount is under $10, then the payer is not required to send you a 1099-INT, however, you are required to report all income whether you get a 1099-INT or not. Any income that is more than 49 cents is reportable and taxable.
You enter the interest as if you had received a 1099-int, just put the bank name as the payer and put the interest in Box 1. That is all you have to do.
