In this tutorial, I will use these photos:
Open Photo 1, press Ctrl+J to duplicate it and name it is Sharpen.
Select layer Sharpen then go to Filter -> Sharpen -> Sharpen Edges.
Apply this filter once more by pressing Ctrl + F.
Continue to go to Filter -> Sharpen -> Sharpen and you will get the result like this:
Press Ctrl + J to duplicate layer Sharpen and name the new one is Screen.
Change its blend mode to Screen.
Open Photo 2 then choose Elliptical Marquee Tool.
Make a selection like this:
Hold Ctrl and drag selection to Photo 1 then go to Edit -> Transform -> Scale to resize the image as you like (change its blend mode to Screen too).
Open texture below:
Put it on the top of layer palette then change its blend mode to Screen, you will get:
Add some text to image and you will get the final result: