Double click the layer to open layer style window. Apply settings as shown.
Duplicate the layer and remove the layer styles. From filter menu select Pixelate>>Mezzotint. Apply settings as shown.
From filter menu select Liquify. Select forward warp tool and distort the text as shown in the image below.
Ctrl+Click the original text layer thumbnail to get the selection. Press Ctrl+Shift+I to inverse the selection and press delete to remove the unwanted areas.
