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Create a halftone border in Photoshop.
Add a halftone drop shadow using Photoshop.
Tutorials
How'd They Do That? - Banner Styles
In just a few minutes you can create this cool banner style effect on any image. Simply follow the steps below. 
June/July 2005
Rounded: Draw a rectangle and type in a word. Select both with the selection tool, and Choose Object > Envelope Distort > Make with Warp. Use the settings shown. Hit OK. We drew in ruler marks and ribbon ends to make it look authentic. Stretched: Follow the steps for Rounded, but use the settings shown to make text appear stretched out.
Tip: If you need to edit the word after you apply the warp, select Object > Envelope Distort > Edit Contents.
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