1) Open a new file. Fill the layer with any color.

2) Choose the type tool and type your text. Then rasterize the type layer.

3) Duplicate the type layer. Rename that to shadow-down.

4) Now, go to Filter > Pixelate > Fragment. Apply this two more times by using (Ctrl + F).

6.) Now apply transform the effect. Choose Edit>FreeTranform to bring on the Free Transform bounding box.

See the Options Bar. Far left there is a matrix of nine dots, select the center one. Then adjust settings for Width and Height to 120% each then press Enter.

7) Change the shadow-down layer's opacity to 85%.

8) Then merge all layers.