See my earlier response: <https://discussions.apple.com/thread/4394262?answerId=19902085022#19902085022> in this thread.
Terminal does not know you ssh'ed and it does not know that you exit'ed from the ssh session. So the Terminal cannot know to change your title.
If this worked on another system, then it was the 'bash' shell doing this, or the old ssh as it was exiting from the session reset the title.
As far as I can see, those are the only to possible ways the title could have been reset to 'bash' after the ssh session terminated.
If you wish to control your title, you can modify your 'bash' PS1 prompt to include an escape sequence.
Starting with.bash_profile (create it if it does not exist, unless you have a .profile, then use that instead), you will need to create your own PS1 variable
PS1="\[\e]0;bash\007\]$PS1"
The \e]0;bash\007 will tell the Terminal to set 'bash' as your title every time bash issues a prompt. So when you return from your ssh session, you will get a bash prompt and it will reset your Terminal title.
The \[...\] tells bash that the stuff in between is not displayed in the prompt, so command line editing is done correctly when lines are longer than the width of the terminal.
the $PS1 just appends your current prompt to the end of the escape sequence that changes your title.
You can replace 'bash' in the title escape string with anything you like. For example you could put \u@\h there to substitute your username@hostname for your local system:
PS1="\[\e]0;\u@\h\007\]$PS1"