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First covert the locked image Backround to a floating layer.
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My first thought was to use Remove Background (open the JPEG, unlock the layer, and go the to Quick Actions section of the Properties panel where you would click the Remove Background button). However, it removes most of the N and quite a bit of the text on the bottom line.
So instead, I would recommend using a Layer Mask and Channels. Here's how:
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You Rock Myra... I'm really struggling here.. I'm a total novice at PS.. I"m getting most of your instructions.. but some of it is just real foreign to me... thank you so much.. I'm going to keep trying. ..
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Oh, I just noticed there was some remaining white with the values that I used in Levels, so you can try some other values or use the Brush tool on the layer mask to remove the white above the N and around the S. You would add black on the layer mask to hide the pixels in the image.
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No kidding? That is such a small graphic at 320 pixels square, and quite busy with a large range of colours. That makes it tricky as all heck.
First thing I do in these situations is look for a better version. Especially much larger pixel size, and with luck, a PNG with transparency. I found a PNG, but it is even smaller!
https://static.spotapps.co/website_images/ab_websites/118786_website/logo.png
OK try this. I am short on time so I'll write the steps.
The blue channel has the most contrast, so drag it to the new channmel to copy.
Select the copy and use Levels to get the contrast as high as you can
Ctrl click the blue channel copy to load it as a selection, and invert it (Ctrl Shift i)
Select RGB and add a layer mask. That gets us started.
Now do the same thing again using a copy of the red channel. That gets our layer mask pretty much all the way there.
There is bugger all contrast in the green channel, so not really worth adding it.
You can see I have a layer filled with green behind the logo. That makes it easier to seaa any leaks in the mask
I would still redo the 'SEAFOOD & DIVE BAR' because it would be easy and would crisp that part of the logo up. If it was in any way important, I would rebuild the entire logo. The palm tree and the three lines between the setting sun and Fins would be tricky to do as a vector shape, so I'd probably leave that as raster. The combine the shape and raster layers as a Smart Object and save them to a Creative Cloud Library. Could you do that?
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I'm not sure... wow.. I appreciate your help.. but I"m still very much a novice here.. si I'm really struggling.. Thanks!
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I've been trying to home in on the SEAFOOD font but wasn't getting anywhere till I realised that the crossbars are lighter weight than the verticals. That suggests that they cheated with the aspect ratio, which would have any self respecting graphic artist screaming into their Café Latte. The capital S is unusual, but the Adequate font is about right. I still wasn't there because the weight is about a semi bold. I decided if I am going to commit sacrilege with the aspect ratio, it's OK to reduce the weight with a one pixel inside stroke the same colour as the background. [CRINGE]