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Just cant see the problem. Type your text, leave the edit mode. Go to Free Transform and increase the height of the text by 2-3 times. Now go to Edit->Transform->Warp. Choose Arc Lower from the drop down list. You'll see warp grid. Grab the handle at the bottom of the grid and push it upwards to change the side the arc. Tweak the height of the text  again if need be.


The key moment here: don't warp text in edit mode, leave the mode and warp text as any other layer.


What is our favorite program/app? (Hint - it begins and ends with the letter P)
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